Hong Kong stocks post first monthly loss this year

Reuters Staff

2 Min Read

Sept 29 (Reuters) - Hong Kong stocks ended higher on Friday, but the benchmark index posted its first monthly loss this year, an indication the market’s upward momentum may be slowing amid worries over U.S. monetary tightening and a China economic slowdown.

Investors are also awaiting China’s 19th Communist Party Congress next month, and the country’s third-quarter economic data.

The Hang Seng index rose 0.5 percent, to 27,554.30, but posted a 1.5 percent loss for September - its first monthly loss in 2017 - reducing this year’s gain so far to 25 percent.

The China Enterprises Index gained 0.3 percent to 10,910.04 points. For the month, it was up 0.2 percent, and for the quarter, the gauge gained 8.6 percent.

Investors will be keenly watching China’s upcoming Communist Party Congress, which starts on Oct. 18, a once-every-five-years meeting where new leaders are appointed and the government’s key political and economic initiatives are laid out, though details are usually not announced until much later.

Investors will also be looking for any indication from upcoming data releases on whether China’s strong recovery that started late last year is running out steam. They also weigh the impact of U.S. Federal Reserve’s plan to shrink its balance sheet and raise interest rates later this year.

Stock performance in the property sector was mixed. Property and resources shares rose but the telecom sector dipped.